Cuomo’s probe of the lending practices of Washington Mutual , and its relationship with Freddie Mac and Fannie Mae is only helping to further deteriorate the housing market by making it even harder for those companies to lend, Cramer said.

The Mad Money host also urged investors to sell AIG ahead of its earnings Wednesday after the bell. Cramer owns AIG for his charitable trust, but has been trying to sell it because, as he said, there’s no way to know what’s really in AIG’s portfolio. He called the insurance giant a “master of obfuscation.”